The Inter State Debt Cycle: A 60 Year Old Dispute That Won't Die The recent Supreme Court proceedings between Punjab and Himachal Pradesh over a 15 year old decree have shed light on India's federal architecture, revealing perpetual disputes between states over financial liabilities.
At its core, this is not just about old debts or disagreements over numbers; it speaks to deeper structural issues within the country's governance framework.
The case revolves around the Bhakra Nangal and Beas power projects, which date back to 1966 when Punjab was divided into two separate states: Punjab (with Haryana) and Himachal Pradesh.